Online payment system is typical platform business where network effect dominates.
There are multiple competitors for Patreon, but they can't get off the ground because they don't have the users because they don't have the creators because they don't have the users.... You can build much better platform and it's just crickets in the sales because operating costs on smaller userbase are higher. Small competitor might force Patreon to reduce prices a little until they can kill the competition, but it's hard to have stable competitors.
Businesses that already have massive number of customer subscriptions and brand recognition could enter the market.
There are multiple competitors for Patreon, but they can't get off the ground because they don't have the users because they don't have the creators because they don't have the users.... You can build much better platform and it's just crickets in the sales because operating costs on smaller userbase are higher. Small competitor might force Patreon to reduce prices a little until they can kill the competition, but it's hard to have stable competitors.
Businesses that already have massive number of customer subscriptions and brand recognition could enter the market.